Bitcoin reclaimed the $114,000 level on Monday as global markets staged a broad recovery following President Donald Trump's decision to walk back tariff threats against China. The cryptocurrency climbed back from weekend lows while traditional equities posted their strongest session since May.
Digital asset markets absorbed significant losses over the weekend after Trump's Friday announcement rattled investor sentiment. Total crypto market capitalization plunged nearly 11% from approximately $4.24 trillion to $3.78 trillion before recovering to reclaim the $4 trillion mark by Monday morning. Ethereum traded above $4,100 as risk appetite returned across financial markets.
The S&P 500 surged more than 1.5% in early trading, adding roughly $850 billion in market value. This optimism extended to crypto‑related equities, with Bitcoin mining stocks leading the charge higher. Bitfarms and Cipher Mining surged 22% and 17%, respectively, while Marathon Digital Holdings and Hut 8 each gained nearly 10% on the session.
Precious metals outperformed most asset classes during the recovery. Gold hit a fresh all‑time high above $4,120 while silver futures contracts approached their own record near $50. Kevin Rusher, founder of real‑world‑asset platform RAAC, noted that gold's performance highlights its enduring appeal during periods of volatility.
Treasury Secretary Scott Bessent helped calm markets by stating that 100% tariffs on Chinese imports “don't have to happen.” Senior administration officials emphasized that U.S.-China relations remain stable, marking a sharp reversal from Friday's tone when Trump's social media posts reignited fears of an escalating trade conflict.
Beijing clarified over the weekend that its export restrictions were limited in scope and not a comprehensive export ban. Trump subsequently posted on Truth Social that “it will all be fine,” referencing his relationship with Chinese President Xi. By Monday morning, administration officials signaled that the proposed tariffs were unlikely to take effect.
Friday's flash crash represented the largest liquidation event in crypto history, with roughly $19 billion in leveraged positions wiped out. Bitcoin proved relatively resilient compared to altcoins, which experienced steeper losses from peak to trough during the sell‑off.
Crypto exchange stocks lagged the broader market recovery. Gemini Space Station and Bullish each fell more than 3%, while Coinbase slipped approximately 2%. The divergence highlighted lingering caution among investors regarding exchange‑related equities despite the recovery in underlying digital assets.
The sell‑off was triggered after Trump announced plans to impose 100% tariffs on Chinese goods as retaliation for tightening rare earth metal exports.